MIDDLE MARKET HIGHLIGHT, JUNE 2006

St. Joseph
Karen Stone, CCIM

Commercial development in St. Joseph started with a bang in 2006 when Triumph Foods opened a new $150 million pork processing plant in January. “Operations are ramping up more quickly than expected and the plant currently employs more than 1,000 people,” says Tom Lesnak, senior vice president of economic development for the St. Joseph Chamber of Commerce. “In the next 18 months, Triumph plans to add a second shift, which will create even more jobs,” Lesnak notes.

Three announcements made so far this year show that alternative fuel manufacturing is becoming a mainstay of the St. Joseph economy. Life Line Foods recently announced that it will build a 30 million-gallon ethanol plant next to a facility it currently operates in south central St. Joseph. Construction of the $64 million plant will start this year and it is estimated production will begin spring 2007.

Omaha-based Ag Processing has announced that it will be adding a 30 million-gallon bio-diesel plant to its existing St. Joseph facility, which is located in the Stockyards Area in southern St. Joseph. Construction of the new $35 million plant in expected to be completed by late summer 2007.

St. Joseph-based Gage’s Fertilizer and Grain will be building a bio-diesel plant on a site in the Riverfront Industrial Redevelopment Area, a 244-acre brownfield tract located south of downtown. Gage’s has an existing facility in the area and is working with Kansas City-based Zimmer Real Estate Services to purchase land for its new plant from BNSF Railroad.

 “St. Joseph has a long history as an agricultural town. A large volume of grain flows through here because of the river,” Lesnak says. “The city has an abundant supply of natural resources, crops and products that are attractive to alternative fuel manufacturers.”

A second sector, animal health products, is also growing in St. Joseph. “In the United States, more than 40 percent of all sales of animal health products come from companies that are located in the in Kansas City/St. Joseph area,” Lesnak explains. Because of this, most companies involved in animal healthcare know of St. Joseph. “We are leveraging this knowledge to attract more businesses in this sector to our area.”

To support the further growth of this sector, in February, the Institute for Industrial and Applied Life Sciences was launched by a partnership among Missouri Western State University, the city of St. Joseph, Buchanan County and local private-sector animal health products businesses. The purpose of the institute is to provide applied learning, research capabilities and skilled workers through its affiliation with the university. The institute will develop, test and commercialize products in the animal health field. In turn, this will support and promote the animal health products sector in the St. Joseph area.

The face of St. Joseph’s downtown is beginning to change because of an aggressive action plan that includes $3 million in streetscape improvements. Construction of the $1.3 million first phase, which will encompass the area along Felix Street between Fourth and Seventh streets, will begin before the end of the year. The design team of Snyder & Associates and BCD&M are facilitating this project. In addition, more than $25 million was spent in 2005 on constructing new buildings and rehabilitating historic buildings.

According to Rhabecca Boerkircher, “As far as downtown development, we are at the tipping point and we are about ready to go over the edge. A number of key buildings have been redeveloped in the past several years, and we have a number of key buildings on the horizon that are set to be redeveloped or renovated within the next several years. “

In 2005, two residential projects were completed in the block along Fourth Street between Francis and Jules streets. The Lofts at Landmark, located at 210 North Fourth Street, were developed by Jeffrey E. Smith Development and brought 45 affordable apartment lofts to downtown. The grand opening of the development was held in February.

In addition, the fire-damaged former Englehart-Winning Building was purchased by the St. Joseph Downtown Partnership and then sold to Springfield, Missouri-based developer, Carlton Garner. Garner renovated the building into the 24-unit Lofts on 4th Street, which was fully leased by the end of 2005. “With the opening of the Lofts on 4th Street, renovation of the entire block is completed,” Boerkircher notes. “What was a block filled with empty shops has now been rejuvenated and is perhaps the best example of its type of architecture (Italian Eight) in the country.” Both of these projects are a part of the conversion of the historic downtown Warehouse District.

Also during 2005, The Foutch Brothers, a local developer, purchased and renovated the former sheltered workshop building at 415 North Third Street, converting it into 48 market-rate apartments. The project was fully leased before the end of 2005 and features numerous amenities, including a workout room and a green roof that has a garden, a swimming pool, a putting green and great views of the city.

“We are also expecting another big announcement by the end of summer about the Heartland Hospital downtown campus,” Boerkircher says. All buildings on the site are being demolished, which, when completed, will create a 13-acre clear site. It is anticipated that Heartland will redevelop the parcel into a residential project called The Uptown Project, which will feature a combination of apartments, condos, townhouses and single-family homes. The site became available for redevelopment when Heartland consolidated its medical operations to its East Side Campus located at 5325 Faraon Street.

Taking advantage of its downtown riverfront, a collaborative effort utilizing state, county, city and private funds is creating a historic village on the northern side of the river along a biking and hiking trail that runs near the St. Jo Frontier Casino. The project, which is expected to cost between $4 million and $5 million dollars, will also feature a nature center, construction of which will begin this year. In connection with this project, the Border Society is excavating a Civil War fort located near the site of the historic village.

Other projects that will be completed this year include the $6 million expansion of the Law Enforcement Center, and an addition to the Salvation Army building located at the corner of Sixth and Messanie Streets.

Outside of downtown, the retail sector welcomed some new additions in 2005. The Shoppes at North Village, a 750,000-square-foot lifestyle center located at North Belt Highway and Cook Road, reached 100 percent occupancy when Kohl’s opened in October 2005. “This development has been a huge success,” Lesnak says. “We are now capturing retail dollars from northwest Missouri and northeast Kansas that were being spent in Kansas City.”

The success of the Shoppes has spawned two other retail developments. Tuscany Village, a mixed-use development located at the intersection of Interstate 29 and Highway 169 North in the northern part of St. Joseph, was announced at the end of 2005. St. Joseph-based JSC Development, the project’s developer, has started construction on the project’s infrastructure.

Kyle and Jaret Archdekin, two local developers, are developing a second retail project, The Commons, on the south side of St. Joseph at the intersection of I-29 and Highway 169 South. The infrastructure of the 40-acre site is completed and a Menard’s is under construction. Other tenants have not yet been announced.

In the city’s southwest quadrant, St. Joseph Business Park Corporation is developing a new 320-acre business park that will house light manufacturing facilities and offices. Grading of the site, which is located in the southwest part of St. Joseph at Riverside Road approximately .25 miles south of Highway 36, will begin in June.

Lesnak believes that 2006 is shaping up to be a record year for economic development. “So far we have had announcements representing more than $100 million in investment,” he says. “This is more than the total of new developments begun and announced in 2005.”

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